This Halloween is shaping up to be a spooky one for gold bulls. The "FBI Clinton Investigation" spike took gold futures as high as $1285 on Friday, however, the gains did not stick and gold is now at risk of breaking its recent bearish flag to the downside:

After sharpening my pencil I view $1265-$1266 to be a crucial downside level, below which a retest of the $1243 low from a few weeks ago will be likely. 

The news induced spike to $1285 followed by weakness is price action characteristic of a bearish market. Again, I need to see a daily close above $1290 to negate the bearish flag interpretation, whereas, a breach of $1265 to the downside triggers a ~$1225 measured move downside target (retest of $1243 at minimum). Either way we are likely to get a significant technical resolution in gold in the next couple of days. 


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